I may have mentioned this is passing before, but lately I have been thinking about how much of our income we spend on taxes. I mean in taxes other than federal income tax. Granted, if we itemize then we do get a tax credit for some of the taxes, but we still pay them and we get credit for them but how much does that really help?
So here is my list:
- state income tax (in most states)
- sales tax
- gasoline tax (on every gallon we pump)
- property tax
- sales tax that is included in the purchase price (such as movie tickets)
- car tags
- businesses tax expenses that are passed on to you
- Social Security/ FICA, Medicare
I know I am forgetting items and if you can think of something else just let me know. I put in the sales tax where it is included in the purchase price because I think we forget that we do pay tax on simple things like movie tickets. I do think that there should be a lower sales tax on food, but that is not the point I am making with this list. But, looking at that list, do you see how much of your income is going for taxes, just think if that money stayed in your pocket so you could spend it. By spending money, you help the economy by passing the money on to others in return for the goods or services you receive. In turn, they pass the money on to others for goods or services they receive and so on. But, what happens when people are taxed more and then have less money to spend. No, this is not in support of Obama, because I do believe that his tax plan as I showed below will actually increase the taxes paid by everyone.